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LICT Corporation Reports Preliminary Fourth Quarter and Full Year 2022 Results
LICT Corporation Reports Preliminary Fourth Quarter and Full Year 2022 Results.
About this update from Lict Corp.
LICT Corporation (“LICT” or the “Company”; OTC Pink ® : LICT) reports unaudited, financial results for the quarter ended December 31, 2022. The Company wishes Kevin Errity well upon his departure and success in his future endeavors. CHARITABLE CONTRIBUTIONS - LICT has completed the recent Shareholder Designated Contribution Program. The current program resulted in $1.1 million of designated contributions for 2022. Equally important, is that since the inception of the program in 2016, LICT has contributed $8.4 million to designated 501 (c) 3 organizations chosen by shareholders. RESULTS - FULL YEAR Revenues in 2022 were $131.3 million, an increase of $2.2 million, compared to $129.1 million in 2021. EBITDA in 2022 was $57.6 million versus $57.8 million in 2021. Earnings per share for the full year of 2022 were $1,311 per share as compared to $1,368 per share for the prior year. RESULTS - 4 TH QUARTER Fourth quarter 2022 revenues totaled $33.1 million compared to $32.5 million for the corresponding quarter in 2021. EBITDA was $14.4 million in the fourth quarter of 2022 as compared to $14.0 million in 2021. Non-regulated revenues for the fourth quarter of 2022 increased 4.6%, to $18.1 million from the prior year’s fourth quarter $17.2 million. Non-regulated EBITDA was $7.5 million, versus the $6.9 million earned in the same period last year. The increase in revenues was driven by the sale of broadband services throughout our network. Regulated revenues were $15.0 million in the fourth quarter of 2022 versus the prior year’s fourth quarter of $15.3 million. Regulated EBITDA was $6.9 million compared to $7.1 million last year. Corporate costs were unchanged at $1.1 million in the fourth quarter of 2022 versus 2021. Earnings per share for the fourth quarter of 2022 were $272 per share as compared to $291 per share for the prior year. Shares outstanding as of December 31, 2022 were 17,341. BROADBAND INITIATIVES - -ReConnect Loan and Grant Program - The ReConnect Loan and Grant Program of the US Department of Agriculture, furnishes loans and grants to provide funds for the costs of construction, improvement, or acquisition of facilities and equipment needed to provide broadband service in eligible rural areas. To date, the Company has accepted a $6.3 million ReConnect III grant, of which LICT has a 25% commitment, from the United States Department of Agriculture (USDA) to build fiber to additional customers in Kansas. In addition, LICT recently accepted 100% grants in New Mexico, California and Michigan for a total of $62.0 million. We are awaiting announcements by USDA on the balance of our ReConnect III applications. -Affordable Connectivity Program – LICT continues its participation in the FCC Affordable Connectivity Program (“ACP”) to support the Company’s ongoing commitment to provide affordable broadband to the rural communities we serve and help close the digital divide. This program provides consumers who are eligible, a broadband credit of up to $30 per month (up to $75 for households on Tribal Lands) towards their qualifying internet plan. We offer a variety of broadband options that qualify under the ACP. -Alternative – Connect America Cost Model (“A-CAM”) Program – The A-CAM program is designed to increase broadband speed and expand the deployment of broadband capabilities throughout the nation’s rural areas with mandatory build-out requirements for receipt of support. LICT is actively building and expanding broadband facilities. CAPITAL EXPENDITURES – In the fourth quarter of 2022, capital expenditures from operations increased by $9.0 million to $17.4 million. Full year 2022 capital expenditures from operations increased by $17.1 million to $48.3 million versus $31.2 million in 2021. Our capital spending enables us to offer enhanced broadband speeds, increase the overall fiber route miles in our network and meet and exceed our A-CAM requirements. SHARE REPURCHASES – During the twelve months ended December 31, 2022, the Company repurchased 530 shares (3.1% of shares outstanding) for $12.3 million, with an average price of $23,204 per share. On December 31, 2022, 17,341 shares were outstanding, with 795 shares still available for authorized repurchase with a target of 40% of our Net Income. AUREON INVESTMENT – 2022 investment income includes a dividend of $0.5 million from a minority investment in Aureon versus $0.2 million in the prior year. We carry this investment at our historical cost of $3.0 million, however, LICT’s share of the book value of the investment is estimated to be closer to $9.0 million. STRATEGIC INITIATIVES – Sound Broadband, LLC, a wireless company providing 5G wireless services within LICT’s footprint and beyond, was formed in the fourth quarter of 2022. LICT continues the process of finalizing the spinoff of our Michigan operation as well as evaluating acquisitions and other growth opportunities. OPERATING STATISTICS/BROADBAND DEPLOYMENT – As of December 31, 2022, LICT owns and operates 6,703 miles of fiber optic cable, 11,258 miles of copper cable, 831 miles of coaxial cable and 85 towers. The Company’s broadband penetration in its franchised telephone service territories, based on its total Incumbent Local Exchange Carrier (“ILEC”) voice lines, was 98.6%, as compared to 93.3% at December 31, 2021. During 2022, the Company’s broadband lines grew by 4.6% to 46,000 units. This increase offsets our voice and video line losses for the year:   December 31, December 31,   Percent   Increase Increase   2022 2021 (Decrease) (Decrease) Broadband lines 45,966 43,939 2,027 4.6% Voice Lines         ILEC 22,655 23,644 (989) (4.2%) CLEC 6,943 7,043 (100) (1.4%) Total 29,598 30,687 (1,089) (3.5%) Video Subscribers 3,670 4,117 (447) (10.9%) Revenue Generating Units 79,234 78,743 491 0.6%   This release contains certain forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including without limitation anticipated financial results, financing, capital expenditures and corporate transactions. It should be recognized that such information is based upon certain assumptions, projections, and forecasts, including without limitation, business conditions and financial markets, regulatory and other approvals, and the cautionary statements set forth in documents filed by LICT on its website, www.lictcorp.com . As a result, there can be no assurance that any possible transactions will be accomplished or be successful, or that financial targets will be met. Such forward-looking information is subject to uncertainties, risks and inaccuracies, which could be material. LICT Corporation is a holding company with subsidiaries in broadband and other telecommunications services that actively seeks acquisitions, principally in its existing business areas. LICT Corporation is listed on the OTC Pink ® under the symbol LICT. For further information visit our website at http://www.lictcorp.com .             LICT CORPORATION Exhibit A Statements of Operations, Balance Sheet and EBITDA   Page 1 of 3 (In Thousands, Except Per Share Data)   STATEMENTS OF OPERATIONS Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021   2022 2021     Revenues $33,131 $32,544   $131,293 $129,160 Cost and Expenses:           Cost of revenue, excluding depreciation 15,688 15,395   61,579 59,017 Selling, general and administration 3,019 3,153   12,154 12,302 Corporate Office Expenses 1,143 1,111   4,676 3,854 Charitable Contributions 910 922   1,051 1,105 Depreciation and amortization 5,380 4,640   20,034 18,851 Total Costs and Expenses 26,140 25,221   99,494 95,129             Operating profit 6,991 7,323   31,799 34,031             Other Income (Expense)           Investment income 204 12   1,224 803 Interest expense (601) (362)   (1,617) (1,343) Equity in earnings of affiliated companies 7 19   109 273 Other (43) 28   (142) 14   (433) (303)   (426) (253)             Income Before Income Tax Provision 6,558 7,020   31,373 33,778 Provision for income taxes (1,829) (1,811)   (8,366) (8,954)   Net Income $4,729 $5,209   $23,007 $24,824           Capital Expenditures from Operations $17,410 $8,429   $48,335 $31,192 Building Acquisition $ - $ -   $ 1,750 $ - Total Capital Expenditures $17,410 $8,429   $50,085 $31,192                   Weighted Average Shares- Basic and Diluted 17,397 17,924   17,551 18,141 Actual shares outstanding at end of period 17,341 17,871 17,341 17,871             Earnings Per Share Basic and Dilutive $272 $291   $1,311 $1,368             See EBITDA on page 3           LICT CORPORATION   Exhibit A   Statements of Operations, Balance Sheet and EBITDA (continued)   Page 2 of 3   (In Thousands)         December 31, 2022 December 31, 2021   ASSETS       Current assets:       Cash and cash equivalents $27,257 $42,466   Accounts receivable, less allowances of $152 and $169, respectively 7,609 7,180   Material and supplies 11,307 8,212   Deposit - 20,000   Prepaid expenses and other assets 4,490 4,068   Total current assets 50,663 81,926           Property, plant, and equipment 152,218 123,473           Goodwill 48,048 48,048   Other intangibles 29,712 16,392   Investments in and advances to affiliated entities 2,318 3,822   Other assets 13,307 10,476   Total assets $296,266 $284,137           LIABILITIES AND SHAREHOLDERS’ EQUITY               Current liabilities:       Trade accounts payable $8,962 $4,388   Accrued interest payable 11 154   Accrued liabilities 10,666 7,720   Current maturities of long-term debt 372 25,577   Total current liabilities 20,011 37,839           Long-term debt 38,252 21,748   Deferred income taxes 28,148 25,025   Other liabilities 8,943 9,323   Total liabilities 95,354 93,935           Total shareholders' equity 200,912 190,202   Total liabilities and shareholders’ equity $296,266 $284,137 LICT Corporation Statements of Operations, Balance Sheet and EBITDA (continued) Exhibit A (In Thousands, Except Per Share Data) Page 3 of 3         SELECTED BALANCE SHEET DATA December 31, December 31,     2022 2021               Cash and Cash Equivalents $27,257 $42,466               Deposit with the FCC for Auction - 20,000               Long-Term Debt (including current portion) (38,624) (47,325)               Net (Debt) Cash ($11,367) $15,141             Shareholders' Equity $200,912 $190,202             Shares Outstanding 17,341 17,871             EBITDA   EBITDA is an established measure of operating performance and liquidity that is commonly reported and widely used by analysts, investors, and other interested parties in the telecommunications industry because it eliminates many differences in financial, capitalization, and tax structures. We believe that EBITDA trends are a valuable indicator of whether our operations can produce sufficient operating cash flow to fund working capital needs, service debt obligations, and fund capital expenditures.   EBITDA is calculated as Operating Profit plus corporate office expenses, depreciation and amortization expense and charitable contributions. Three Months Ended Twelve Months Ended December 31, December 31, 2022 2021 2022 2021 EBITDA Reconciliation:     Operating Profit $6,991 $7,323   $31,799 $34,031   Additions:           Corporate expenses 1,143 1,111   4,676 3,854 Charitable contributions 910 922   1,051 1,105 Depreciation and amortization 5,380 4,640   20,034 18,851 EBITDA from Operations $14,424 $13,996   $57,560 57,841   View source version on businesswire.com: https://www.businesswire.com/news/home/20230314005934/en/